Zero change in the Federal Reserve’s interest rate was largely expected as US indices moved upward over the session. Most European markets were closed bar Denmark and the UK, of which the latter failed to stay dry over the session.
Today’s Federal Reserve announcement left interest rates unchanged, however stocks still rose on the back of hopes for a cut in the near future. The US 2-year treasury bond yields fell -9bps to 4.96%, while the 10-year fell -7bps to 4.62%. The Dow spiked +1.1% in a late-day rally, while the S&P 500 added +0.9%, the NASDAQ up +1.4%. AMD’s worse-than-expected chip sales forecast lost the stock -7.4%. Super Micro Computer fell further (-11.0%) due to its quarterly revenue miss. Amazon added +4.5% after its quarterly earnings beat, the driver being AI driven cloud-computing growth. Johnson & Johnson advanced +4.8% after it said it would proceed with a US$6.5b settlement over its baby powder and other products. Starbucks (-17.2%) fell sharply after it pared back sales forecasts. CVS Health plummeted -16.9% after earnings fell behind expectations in conjunction with a cut in its profit forecast.
Most European markets were mostly closed today due to Labor Day. The UK’s FTSE 100 fell -0.3% while data released from the region showed a decline in manufacturing activity.
Hong Kong’s Hang Seng (+0.1%) and Korea’s Kospi (+0.2%) were the only two indices to stay dry in Asia. Japan’s Nikkei 225 (-0.3%), along with China’s CSI 300 (-0.5%) and Shanghai Composite (-0.3%) all fell. Wall Street had an unending hold on the Australian exchange as the top ASX 200 index fell -1.2% in part due to the US’ labour and house price data. Woolworths inched -0.3% lower after it sold its stake in two firms, raising A$468m. Rival Coles jumped +1.1% after its target price was raised by three brokers following to its recent results release. Amcor’s March-quarter results were ahead of expectations, pushing the stock +4.6%. The NZX 50 slumped -0.8%.
WTI Crude plummeted -3.4% to US$79.27/bbl, while Gold jumped +1.2% to US$2,314.25/oz and Iron Ore added +0.2% to US$117.47/MT.
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This morning summary has been provided by Forsyth Barr Ltd and is for general information purposes only - your financial situation or goals have not been taken into account. If you would like more information or advice that is specific to you, talk to your financial adviser.